THE SHIFT IN THE FUNCTION OF THE STATE IN LAND CONTROL: A LEGAL ANALYSIS OF THE ROLE OF LAND BANKS AS SEMI-AUTONOMOUS ENTITIES

Abstract

The Land Bank emerged as a juridical body entrusted with administering land resources for societal needs and developmental objectives. Nevertheless, its establishment signals a transformation in the state’s role, from a purely regulative authority to a quasi-commercial actor that actively consolidates and governs agrarian assets. This paper scrutinizes the juridical standing of the Land Bank within Indonesia’s land governance framework and interrogates its ramifications for the doctrine of the state as the custodian of public trusteeship as set forth in Article 33 paragraph (3) of the 1945 Constitution. The analysis shows that there has been a shift in the function of the state from being the holder of land sovereignty to an economic facilitator through a new institution that has the potential to deviate from the principle of agrarian justice. Thus, this institution has the potential to shift the function of the state and deviate from the principle of agrarian justice.